From 2020, the withheld preliminary income tax will increase from 7% to 12%

From 2020, the withheld preliminary income tax will increase from 7% to 12%

This is envisaged by the amendments to the Tax Code adopted as part of a package of tax measures agreed with the IMF. The relevant law was promulgated by the President of Moldova and published on Friday in Monitorul Oficial. In accordance with the document, the unified income tax rate for individuals and legal entities, introduced on October 1, 2018, will be maintained in Moldova, while the withheld preliminary payments made in favor of a resident will increase from 7% to 12% in accordance with Article 90 of the Tax Code. Thus, since 2020, persons engaged in entrepreneurial activities, with the exception of owners of entrepreneurial patents and persons engaged in independent activities, each representative office, permanent establishment, institution, organization, including any public authority and public institution, will preliminarily deduct 12% as part of the tax from the payments made in favor of an individual, with the exception of owners of entrepreneurial patents, individual entrepreneurs and peasants (farmer's) households and other persons stipulated by law. At the same time, 12% of payments made in favor of an individual is not withheld in advance from the income received by him/her in accordance with Articles 20, 88, 89, 901 and 91 from the alienation of vehicles, the alienation of securities, as well as from the amount for the land leased for agricultural purposes and / or alienation of capital assets of individuals-citizens of Moldova according to the contracts on lease, leaseback, pledge, mortgage and / or in cases of forced alienation of capital assets, and in case of liquidation of an economic entity - from liquidation non-monetary payments. This measure will bring additional approximately 24 million lei in revenues to the 2020-state budget. // 06.09.2019 - InfoMarket.

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